The battle before the hearing! Coinbase Chief Financial Officer: If the U.S. is over-regulated, encryption will go underground

Senior executives from six large U.S. cryptocurrency companies (Circle, FTX, Bitfury, Paxos, Stellar Developer Foundation and Coinbase) will participate in the Financial Services Committee of the House of Representatives at 23:00 Beijing time today (8) The hearing held to discuss the future of digital assets and finance together.

At present, several executives have stated in their prepared testimonies that they will support clearer rules; but they also emphasized that excessive restrictions will only push them out of the control of the United States. Yesterday (7), according to the testimony issued by Coinbase Finance Chief Alesia (Alesia Haas), she warned that if there is no tailor-made and public participation in public discussions to formulate legislative solutions, the United States will face excessive Onerous and chilling legal risks. This will push cryptocurrency activity underground, or push it to offshore exchanges with few compliance plans.

The testimony of Bitfury CEO Brian Brooks stated: There are many examples of US regulatory decisions to push legal activities overseas, harming US investors, innovators and workers. There is a reason why cryptocurrency talents are no longer concentrated in Silicon Valley, the birthplace of the commercial Internet.

FTX also released a "Market Regulation Principles" containing 10 proposals last week, proposing to unify regulatory agencies, reorganize market roles, and require cryptocurrency exchanges to conduct regular anti-money laundering supervision.

A new working group will be established to address cryptocurrency crimes

At almost the same time, the Biden administration yesterday released the "U.S. Anti-Corruption Strategy"-this is the first document expounding the government's anti-corruption policy.

The document stated that the Ministry of Justice will use a newly established working group, the National Cryptocurrency Enforcement Group, to focus on complex investigations and prosecutions of criminal abuse of cryptocurrency, and focus on virtual currency transactions and illegal money laundering crimes.

The Biden administration has long been concerned about wrongdoing in the encryption field, because some of the most high-profile ransomware attacks this year have used cryptocurrency to collect ransoms. Following the Colonial Pipeline and JBS ransomware attacks, the US Department of Justice announced that it would raise ransomware to a priority similar to that of terrorism.

On the other hand, cryptocurrency also provides the economic lifeline for those sanctioned by the United States, such as North Korea and Iran. The US Treasury Department stated earlier this year: These technologies provide malicious actors with opportunities to hold and transfer funds outside of the traditional financial system. They also enable our opponents to build new financial and payment systems to weaken the global role of the U.S. dollar.

Last week, SEC Chairman Gary Gensler also called for the regulation of cryptocurrency again, saying that it is rife with fraud, scams and abuse.

The policy framework needs to support openness and encourage competition

Faced with various voices from the market and the government, Circle CEO Jeremy Allaire said: The stablecoin and Internet native capital market are not too big to fail, but now they are too big to be ignored. The policy framework needs to support an open and competitive environment and allow new technologies to flourish.

Proponents say that stablecoins can revolutionize payment methods by providing a reliable, low-cost, and instant way to transfer funds around the world. The U.S. should play a leading role in nurturing this technology, just as U.S. rules allowed the Internet to flourish in the early 1990s.

Denelle Dixon, head of the Stellar Development Foundation, said: Let us work together to ensure that American decision makers can build an efficient and intelligent stage...I hope we all agree that cryptocurrency and stable currency should not be buzzwords, should not be Used to incite fear of the unknown.